Get details about Canada Bank Interest Rates 2024: What Are the Projected Interest Rates Changes in Various Canadian Banks? from this article. Different information about Canada Bank Interest Rates 2024: What Are the Projected Interest Rates Changes in Various Canadian Banks? and other noteworthy things are mentioned in this article.
Canada Bank Interest Rates 2024
The Bank of Canada announces the set overnight rate target on 8 scheduled dates each year. In addition, the Bank of Canada also provides a press release explaining why the overnight rate target was changed or left unchanged.
The policy interest rate of the Canada Bank is 5%, and the total CPI inflation is 3.1% (October 2023). However, the Bank of Canada has made a statement that it will continue with its quantitative tightening policy.
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What Are the Projected Interest Rates Changes in Various Canadian Banks?
The interest rates in various Canadian Banks change according to the monetary policy of the Bank of Canada. Most of the banks make adjustments in their interest rates and prime rates according to the target for the overnight rate set by the Bank of Canada.
However, each bank can have a slightly varying interest rate. Nevertheless, many factors are affected by the Bank of Canada’s monetary policy changes. This can include changes in various kinds of borrowings available in the market, such as prime rate, interest paid on GICs, savings, and deposits, etc.
According to the experts, the protected interest rates indicate that the Bank of Canada is likely to cut the rates next year. The current bank rate is still the same, i.e., 5¼%, and the deposit rate is set at 5%.
In a recent statement by the Bank of Canada, they stated that global inflation has increased even further. In addition, the global economy is also continuously slowing down.
However, in Canada, the economic growth was stopped somewhere around the mid-quarter of 2023. The investment in the business was false and quite volatile. In addition, job creation is significantly slower than the growth in the labour force.
The overall data indicates that in the 4th quarter of 2023, the economy doesn’t seem to be in excess demand. In light of the signs that the monetary policy is relieving the piece pressure, the Bank of Canada has decided to hold its policy rate.
Not only did they decide to hold the policy rates, but they also are continuing to normalize the balance sheet of the bank. However, the governing council that decided to hold the policy rate is still concerned about the risks of inflation. They are prepared to increase the policy rate if their concerns become true.
Furthermore, the governing council is focusing on the balance between the supply and demand in the current economy, salary increases, expectations of inflation, etc. Moreover, the Bank of Canada is committed to restoring the stability of the prices for Canadians.
More information about the changes in the interest rates will be available on the next scheduled date for the overnight rate announcement. The next date for the announcement is January 24.
The bank will provide the risks to the projection, outlook for the inflation and economy, interest rates, monetary policy, and various other factors in this announcement.
Interest Rate Announcement
The Bank of Canada will announce the interest rates on pre-scheduled dates. The first announcement of the interest rate and monetary policy report is scheduled to be held on January 24, 2024.
After this, the next Interest rate announcement will occur on March 6, 2024. Another interest rate announcement will follow this announcement on April 10, 2024.
Schedule for 2024 –
- January 24 – Interest Rate/Monetary Policy Report
- March 6 – Interest Rate
- April 10 – Interest Rate/Monetary Policy Report
- June 5 – Interest Rate
- July 24 – Interest Rate/Monetary Policy Report
- September 4 – Interest Rate
- October 23 – Interest Rate/Monetary Policy Report
- December 11 – Interest Rate
People can obtain the historical report of monetary policy changes from the Bank of Canada’s website. In addition, all the key announcements associated with the interest rates will also be available on the same website.
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Check the Target of Overnight Rate Data of 2023 – 2022:
| Date | Target |
| July 13, 2022 | 2.5% |
| September 7, 2022 | 3.25% |
| October 26, 2022 | 3.75% |
| December 7, 2022 | 4.25% |
| January 25, 2023 | 4.5% |
| March 8, 2023 | 4.5% |
| April 12, 2023 | 4.5% |
| June 7, 2023 | 4.75% |
| July 12, 2023 | 5% |
| September 6, 2023 | 5% |
| October 25, 2023 | 5% |
| December 6, 2023 | 5% |
Since July 12, 2023, there has not been any change in the interest rate. However, this rate might be changed in the second scheduled announcement. The factors that drive the change in the target will also be explained along with the new rate.
